RealtyTrac recently released their Q1 2013 U.S. Foreclosure & Short Sales Report™. One of the more interesting revelations in the report was the decrease in the number of short sales being completed. According to the report, properties not in foreclosure that sold as short sales in the first quarter accounted for an estimated 15% of all residential sales. This is down 10% from the last quarter (4th quarter of 2012) and down 35% from the first quarter of 2012.
In an attempt to help more consumers who are facing foreclosure, Chase has streamlined their requirements in order to expedite their short sale process. We will cover the basics on the process and timeline in this post. Chase will let you start the short sale process prior to having an offer on your property. However, in order to start the process, you have to show a legitimate financial hardship; meaning your financial picture has changed since you have taken out the loan.
Here are examples of what most lenders and investors accept as hardships:
The short sale process can be very complex. Every bank and investor has a slightly different program and set of guidelines they follow. Since each investor has different rules and guidelines, it can help you considerably to find out who the investor is before starting the process.
Whether you are a homeowner in need of help with a short sale or an agent trying to help a homeowner, one of the best things you can do is to understand the situation you are getting into. A key piece of this short sale puzzle is finding out who actually “owns” the loan not just who services the loan.
For today's blog post, we’re excited to have Brandon Brittingham, co-author of the Short Sale Campus (SSC) designation, share with us his interview with a member of the U.S. Treasury. - The KCM Crew
You may not be aware of the role the US Treasury has played in the housing market over the last few years, but it has had a huge role in getting us on the road to recovery. They are the ones responsible for the government-backed Making Home Affordable (MHA) program which created uniform guidelines for loan modifications, HAFA short sales, and foreclosure prevention. The MHA program has helped thousands of homeowners across the country avoid foreclosure by offering numerous loan modification options or options like a short sale.
With home values falling dramatically from 2006 boom prices, many homeowners have found themselves in what is called a ‘negative equity’ or ‘underwater’ situation. This means the value of their home is currently less than the mortgage amount on that home.
Many of these homeowners have been ‘locked’ into their houses because they were unable to sell it without bringing cash to the closing table. The good news is this situation is improving as prices begin to rise.